Canada-based digital financial services provider Wealthsimple has received provisional approval to join the Interac e-Transfer service as a participant and provide Canadians with new ways to transact.
As per the press release information, since the launch of the Interac e-Transfer service, federally regulated banks and provincially regulated credit unions have been eligible to participate in the service. Currently, organisations that are both FINTRAC-regulated Money Service Businesses (MSBs) and investment dealers regulated by the Canadian Investment Regulatory Organization (CIRO) are enabled to apply to become participants and make Interac e-Transfer available for their customers.
To take part in the Interac e-Transfer service, eligible financial institutions are required to undergo a rigorous application process and meet all the same requirements and obligations as those of existing participants. What is more, the Bank of Canada offers oversight of the Interac e-Transfer services, which the announcement details to be designated as a prominent payment system under the Payment Clearing and Settlement Act.
By broadening access to the Interac e-Transfer service to an expanded category of financial institutions, the company is looking to expedite its impact in the market. Company representatives advised that as financial services are evolving, a growing number of Canadians are making use of innovative new offerings. Per their statement, by extending Interac’s trusted product and platform to new organisations while simultaneously maintaining high-security standards, the enterprise is set to enable Canadian consumers and businesses alike to transact in new ways, confidently.
Wealthsimple is set to become the first new participant under the broadened access, joining more than 280 financial institutions in enabling customers to send, request, and receive money between accounts leveraging the Interac e-Transfer service. Wealthsimple’s easy-to-use platform offers millions of Canadians access to managed investing, self-directed trading, cryptocurrency, spending, saving, and tax filing services.
When commenting on the announcement, Wealthsimple officials said that it comes as a testament to the company’s impact on the Canadian financial ecosystem, the investments made towards product innovation, and its commitment to becoming a ‘world-class’ financial institution. They expressed excitement about joining the Interac e-Transfer service as a participant and providing Canadians who choose Wealthsimple with an improved money movement experience.
More to this point, Interac officials confirmed that the Interac e-Transfer service has seen growth in the past years, with Canadians completing over one billion transactions in 2022 alone and the service being increasingly leveraged by businesses and governments, apart from consumers. Per their statement, by providing Canadians with reliable access to funds and enhanced features, the service has been considered instrumental in facilitating economic activity and digital commerce across Canada throughout the last 20 years.
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